Indian cigarette makers halt production

Indian cigarette makers including ITC Ltd, part-owned by British American Tobacco, suspended production on Friday over what they said was ambiguity in the government’s new health warning rules for packs, a leading industry body said.

Rules that mandated 85 percent of a cigarette pack’s surface to be covered in health warnings, up from 20 percent, kicked in from Friday after being delayed for a year.

But cigarette makers failed to com- ply, with packs with smaller warnings still being sold in the capital New Delhi.

The Tobacco Institute of India (TII) said the industry was concerned over potential violation of health warning rules by continuing production, adding that the production halt would cost the industry $53 million a day.

India was last year forced to delay implementation of stringent pack warning rules as a parliamentary panel sought time to assess how the industry would be impacted.

The health ministry later decided to implement the rules from April this year, but the panel last month issued a report saying the size of warnings should be reduced to 50 percent in the interest of the industry and tobacco farmers.

Health activists have criticized the panel for favouring the industry. The World Health Organization has called the debate on reducing the warnings size in India “worrisome”. (RTRS)